00:00It's Benzinga bringing Wall Street to Main Street.
00:02Morgan Stanley pushed its forecast for the Federal Reserve's next rate cut to September
00:06from June, joining Goldman Sachs and Barclays after the central bank flagged inflation risks
00:11tied to the Middle East conflict. According to Reuters, the firm now expects quarter-point
00:16cuts in September and December, revising its prior outlook for June and September reductions.
00:22Jerome Powell said higher energy prices will push up inflation and that it is too soon
00:26to determine the scope and duration of the economic impact. Fed projections show policymakers
00:32expect one rate cut this year, while Wall Street firms still expect two. Morgan Stanley warned
00:37cuts could be delayed or not occur, while a further oil surge could weaken activity in
00:42labor markets. Traders see more than a 70% chance the central bank will keep rates unchanged in
00:47September, according to CME FedWatch. For all things money, visit Benzinga.com.
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